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Question 4 (1Jint) Three years ago, Simple Electronics Corporation (SEC) issued a 30 year 7% semi- annual coupon bond. The bond currently sells for 112%

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Question 4 (1Jint) Three years ago, Simple Electronics Corporation (SEC) issued a 30 year 7% semi- annual coupon bond. The bond currently sells for 112% of par. The tax rate for SEC is 31%. What is the after tax cost of debt for the firm? 3% 4.2% 6.1% 07% 8.4% View hint for Question 4

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